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Cattles Invoice Finance in £70m PE sale - 10/08/2009
Cattles Invoice Finance (CIF) is to be sold to private equity company AnaCap Financial Partners.
The business funder has agreed conditional terms on the deal, which values the company at £70m. It plans to re-brand and funding will be provided by Lloyds TSB Commercial Finance.
The transaction is subject to final shareholder approval, and is expected to close in around five weeks.
CIF was formed in 1994 and provides cash flow solutions to small and medium-sized businesses from its network of six regional centres. Its annual client turnover is in excess of £1bn, with facility sizes ranging from £25,000 to £4m.
London-based AnaCap is a specialist private equity fund focused on making pan-European investments in the financial services sector. Having recently closed its second fund, raising €575 million from investors, including Goldman Sachs, Allianz, Honeywell, Morgan Stanley Alternative Investment Partners, State of New Jersey and Adams Street Partners, AnaCap’s total funds under management now exceed €920 million. Existing portfolio companies include IT finance provider Syscap and collections company Apex Credit Management. Recently, AnaCap also completed the first ever acquisition by a private equity fund manager of a UK deposit-taking bank, which is now known as Aldermore.
Peter Cartwright and Andy Wynn, partner and head of credit at AnaCap will now join CIF’s board, led by chief executive, Doug Crawford.
Crawford said that over recent years, CIF has operated increasingly autonomously from Cattles plc, which is currently investigating a £700m hole in its accounts and has terminated the employment of several directors over their management of the company.
He added:"The deal sees our funding line increase significantly, allowing us to retain our independence while strengthening our focus on the enormous potential for further growth and development of the SME market. The invoice finance industry is enjoying unprecedented growth in the current financial climate, and we intend to capitalise on the opportunity that this provides to fund more of the right kinds of deals and develop more tailored products and services in line with the changing needs of the market."
Crawford said in the short-term CIF will continue to trade as Cattles Invoice Finance, after which it will "undergo a significant re-branding process that will build on our current strengths and incorporate the innovations we plan to implement over the coming months".
Chris Patrick, mergers and acquisitions partner at AnaCap, added: "We are excited about the future prospects for CIF, and pleased to be providing continuity for the company’s staff and clients. The business has a strong platform and an excellent management team. With our support and backing, the company will be able to further expand its operations in the SME funding market."
Cattles Invoice Finance (CIF) is to be sold to private equity company AnaCap Financial Partners.
The business funder has agreed conditional terms on the deal, which values the company at £70m. It plans to re-brand and funding will be provided by Lloyds TSB Commercial Finance.
The transaction is subject to final shareholder approval, and is expected to close in around five weeks.
CIF was formed in 1994 and provides cash flow solutions to small and medium-sized businesses from its network of six regional centres. Its annual client turnover is in excess of £1bn, with facility sizes ranging from £25,000 to £4m.
London-based AnaCap is a specialist private equity fund focused on making pan-European investments in the financial services sector. Having recently closed its second fund, raising €575 million from investors, including Goldman Sachs, Allianz, Honeywell, Morgan Stanley Alternative Investment Partners, State of New Jersey and Adams Street Partners, AnaCap’s total funds under management now exceed €920 million. Existing portfolio companies include IT finance provider Syscap and collections company Apex Credit Management. Recently, AnaCap also completed the first ever acquisition by a private equity fund manager of a UK deposit-taking bank, which is now known as Aldermore.
Peter Cartwright and Andy Wynn, partner and head of credit at AnaCap will now join CIF’s board, led by chief executive, Doug Crawford.
Crawford said that over recent years, CIF has operated increasingly autonomously from Cattles plc, which is currently investigating a £700m hole in its accounts and has terminated the employment of several directors over their management of the company.
He added:"The deal sees our funding line increase significantly, allowing us to retain our independence while strengthening our focus on the enormous potential for further growth and development of the SME market. The invoice finance industry is enjoying unprecedented growth in the current financial climate, and we intend to capitalise on the opportunity that this provides to fund more of the right kinds of deals and develop more tailored products and services in line with the changing needs of the market."
Crawford said in the short-term CIF will continue to trade as Cattles Invoice Finance, after which it will "undergo a significant re-branding process that will build on our current strengths and incorporate the innovations we plan to implement over the coming months".
Chris Patrick, mergers and acquisitions partner at AnaCap, added: "We are excited about the future prospects for CIF, and pleased to be providing continuity for the company’s staff and clients. The business has a strong platform and an excellent management team. With our support and backing, the company will be able to further expand its operations in the SME funding market."
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